Environment Secretary Steve Reed was caught in the middle of a storm of protests as he attended the Oxford Farming Conference today.
The Cabinet minister had to be escorted by police after a group of farmers voiced their anger over Labour’s inheritance tax policy.
As Reed delivered a speech addressing the issues facing farmers, a chorus of horns from about 20 tractors could be heard outside the venue, with some tractors displaying bold signs of protest.
Protesters Demand Change Over Inheritance Tax Policy
The farmers’ protest was centered on Labour’s decision to introduce a 20% inheritance tax on farms valued above £1 million, a move that shocked many in the farming community.
Reed, who had previously apologized for the shock to farmers, acknowledged the financial difficulties that many have faced, admitting the government was trying to fill a “financial black hole” but promised reforms that would make farming more profitable in the future.
Farmers Voice Discontent with Government’s Plans for the Sector
However, farmers like Julie Adams, an arable farmer near Bicester, were not convinced by Reed’s new proposals.
Adams criticized the government’s plans as irrelevant, stating that many farmers had already diversified their businesses and were still struggling.
She argued that the inheritance tax threshold should be increased to £10 million, and made it clear that the protests would continue until the policy was revisited.
NFU President Calls for Action from Prime Minister and Chancellor
The National Farmers’ Union (NFU) president, Tom Bradshaw, acknowledged that Reed’s apology was a first but emphasized that the power to reverse the inheritance tax decision now lay with Prime Minister Keir Starmer and Chancellor Rachel Reeves.
He warned that farmers were not backing down, with more protests planned across the UK, including a major protest on January 25.
Bradshaw urged the government to quickly recognize the severity of the situation, as it continued to spiral.
Labour’s Inheritance Tax Reforms Face Strong Opposition from Rural Communities
Mo Metcalf-Fisher from the Countryside Alliance, which organized the demonstration, argued that Reed’s attempt to ease tensions with the farming community would not work.
He described the inheritance tax change as a “roadblock” to any further negotiations and said farmers would not overlook the “massive elephant in the room” that was the “family farm tax.”
Metcalf-Fisher added that most farmers were not willing to listen to any further plans from Labour unless the inheritance tax issue was addressed.
Concerns About Inheritance Tax Impact on Farm Businesses
Victoria Vyvyan, president of the Country Land and Business Association, also voiced concerns about the financial impact of the inheritance tax changes on farm businesses.
She warned that capping inheritance tax reliefs could threaten the viability of family farms, which play a crucial role in enhancing the environment and providing public goods.
Vyvyan stressed that farmers needed to be able to run profitable businesses in order to contribute to the government’s long-term growth and investment goals.
Tory MPs Criticize Labour’s Approach to Farming and Rural Communities
Tory MP Victoria Atkins also weighed in on the issue, accusing Labour of introducing a “vindictive” family farm tax that could destroy the farming industry as it exists today.
Atkins also pointed to Labour’s proposals to hike National Insurance, which she claimed would result in job losses and harm rural businesses.
In contrast, Atkins highlighted the Conservatives’ efforts to support farmers through measures like the Agriculture Act and the UK Food Security Report, which Labour had voted against in the past.
The Future of Family Farming Under Labour’s Inheritance Tax Reforms Remains Uncertain
As protests continue to mount, the question remains whether Labour will reconsider its inheritance tax policy, or if the government’s relationship with the farming community will continue to deteriorate.
Farmers across the country are determined to make their voices heard, and it seems clear that the issue of inheritance tax will remain at the heart of this ongoing debate.